A consortium led by EDF Group and Masdar, alongside partners Korea East-West Power Co. (EWP) and SUEZ, has successfully secured financing from both local and global financial institutions for a multi-utility infrastructure project at the AMAALA tourism destination in Saudi Arabia. The overall project cost is approximately $1.5 billion. This innovative facility is projected to save around 350,000 tons of CO2 emissions annually and is developed by Red Sea Global. AMAALA is designed as a regenerative destination, emphasizing wellness and sustainability, and is expected to welcome guests starting in 2025.
Financial Backing and Commitment to Sustainability
The financial close was facilitated by support from key financial institutions, including First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. This milestone highlights the consortium’s dedication to realizing AMAALA’s vision of luxury, sustainability, and cultural enrichment.
In September 2023, the consortium secured a 25-year multi-utility concession agreement with Red Sea Global, allowing for financing, engineering, development, construction, operation, maintenance, and transfer of the multi-utilities infrastructure facility that will service the AMAALA destination.
Innovative Infrastructure and Environmental Impact
The new facility will include a fully optimized and decarbonized off-grid renewable energy system, featuring a 250 MW solar photovoltaic park, 700 MWh battery energy storage, transmission and distribution lines, and a desalination plant capable of producing 37 million liters of drinking water daily. It will also incorporate wastewater treatment plants, ensuring reliable service 24/7.
This cutting-edge project is designed to prevent nearly 350,000 tons of CO2 emissions annually compared to traditional infrastructures. It marks a significant step towards a new era of eco-friendly luxury tourism.
Leadership Insights
John Pagano, Group CEO of Red Sea Global, stated, “This project demonstrates that large-scale tourism destinations can operate entirely on renewable energy while offering luxury experiences and solid financial returns for partners. The collaboration with EDF, Masdar, EWP, and SUEZ keeps us on track to make AMAALA our second destination powered by sunlight.”
Beatrice Buffon, EDF Group Vice-President, emphasized, “Reaching the financial close of AMAALA is a significant achievement. Our commitment to delivering carbon-free electricity and 24/7 water access sets a new standard for similar projects.”
Mohamed Jameel Al Ramahi, CEO of Masdar, noted, “Our partnership with EDF, EWP, and SUEZ reflects our goal to develop clean energy solutions that align with the Kingdom’s Vision 2030, establishing Saudi Arabia as a sustainable luxury tourism destination.”
Kim Young-Moon, CEO of EWP, added, “This project is pivotal for reducing carbon emissions and improving air quality while fostering economic growth in the region.”
Pierre Pauliac, COO of SUEZ, stated, “We are excited to support this strategic project, ensuring access to clean drinking water and advanced wastewater treatment, reinforcing our commitment to resilient water solutions.”
Commitment to Regenerative Practices
AMAALA is committed to achieving a 30% net conservation benefit for local ecosystems by 2040. This goal will be met by enhancing habitats such as mangroves, seagrass, corals, and terrestrial vegetation, promoting biodiversity while contributing to carbon sequestration.
Upon completion, the first phase of AMAALA will feature over 4,000 hotel rooms across 30 hotels and 1,200 high-end residential units, fostering a vibrant community for over 15,000 residents and workers in a sustainable living environment.
